SOARING COSTS UNDER CONTROL

An end to high up-front costs

How pay-per-patient models can help to preserve liquidity.

Missing resources for high-tech treatment can be a complex topic, but it is here to stay. No hospital or practicing doctor can do without it – the diagnostic possibilities offered by MRI scanners, for example, are undisputed and indispensable. And each new generation of equipment brings greater precision, reliability, and efficiency while reducing the adverse impact on patients.

The benefits are clear – the problem however is the runaway costs. Coupled with the fact that a large chunk of the funding for MRI scanners and other equipment is spent right at the start of the asset’s lifetime. Procuring and funding assets with acquisition costs that run into the six or seven figures can be a challenge even for large organisations.

Hospital managers therefore face a huge dilemma: the market for medical treatments is regulated and the prices have been standardised. This creates a high level of complexity in the profitability calculation. Will it be possible to carry out subsidised treatments, more expensive treatments, and more treatments overall? Will there be a return on the investment within a reasonable period? Is it in line with the hospital’s budget? What sort of running and servicing costs will the equipment incur? How can the expectations of medical management on high-value equipment be fulfilled without overstretching the budget?

This calls for innovative thinking. In industry, funding based on price per unit is common. So why not pay-per-patient or pay-per-procedure? Under this model, the overall cost of procuring and using the medical equipment is broken down by individual case of treatment. This makes it much easier to determine whether using the equipment is economical or not.

Affordability no longer needs to be the main consideration when using high-tech medical equipment. Instead, the focus is on how the equipment can benefit the patient and the hospital.

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We look forward to talking about Pay-Per-Patient and healthcare with you.